Note 3—Investments in Partnerships

The following table provides information about the carrying value of the Company’s investments in partnerships and ventures:


	At		At
	March 31,		December 31,
(in thousands)	2020		2019
Investment in Solar Ventures	$	344,601	$	289,123
Investments in U.S. real estate partnerships		19,236		19,822
Investment in South Africa Workforce Housing Fund ("SAWHF")		4,761		7,732
Total investments in partnerships	$	368,598	$	316,677

Investments Related to the Solar Ventures

At March 31, 2020, the Company held 44.5%, 50.0%, 44.5% and 100% equity interests in Solar Construction Lending, LLC (“SCL”), Solar Permanent Lending, LLC (“SPL”), Solar Development Lending, LLC (“SDL”) and Renewable Energy Lending, LLC (“REL”), respectively (collectively referred to as the “Solar Ventures”).

At March 31, 2020, the carrying value of the Company’s equity investments in SCL, SPL and SDL was $231.1 million, zero and $113.5 million, respectively. None of these investees were assessed to constitute a Variable Interest Entity (“VIE”) and the Company accounts for all of these investments using the equity method of accounting. At March 31, 2020, these joint ventures had $434.2 million of unfunded loan commitments that required borrowers to meet various conditions set forth in governing loan agreements in order for funding to occur. The unfunded loan commitments that qualified for funding, were anticipated to be funded primarily by capital within the joint ventures through a combination of existing loan redemptions and idle capital. To the extent capital within the joint ventures is not sufficient to meet their funding obligations additional capital contributions by the members would be required.

During the three months ended March 31, 2020, the Company and its capital partner in SDL and SCL executed various non-pro rata funding agreements pursuant to which our capital partner in SDL contributed in total $36.5 million of $83.0 million in capital calls and our capital partner in SCL contributed in total $61.0 million of $97.5 million in capital calls, while the Company contributed the balance. In addition, our capital partner in SDL and SCL received distributions of $32.0 million and $37.5 million, respectively, while the Company received $15.0 million and $10.5 million, respectively. As a consequence of these non-pro rata capital contributions and distributions during the first quarter of 2020, our ownership interest in these ventures increased in percentage terms from December 31, 2019.

The Company paid $5.1 million for the buyout of our prior investment partner’s ownership interest in REL, on June 1, 2018, which was allocated to the net assets acquired based upon their relative fair values. This allocation resulted in a cumulative basis adjustment of $4.5 million to the Company’s investments that is amortized over the remaining investment period of SCL. For the three months ended March 31, 2020 and March 31, 2019, the amortization expense related to the Company’s basis difference was $0.2 million. At March 31, 2020 and December 31, 2019, the unamortized balance of the Company’s basis difference was $2.9 million and $3.1 million, respectively.

The following table provides information about the carrying amount of total assets and liabilities of all renewable energy related investees in which the Company had an equity method investment:


	At		At
	March 31,		December 31,
	2020		2019
(in thousands)
Total assets (1)	$	781,734	$	706,792
Other liabilities (2)		14,360		22,135

⁽¹⁾

Assets of these ventures are primarily comprised of loans that are carried at fair value.

⁽²⁾

Other liabilities of these ventures are primarily comprised of interest reserves.

The following table provides information about the gross revenue, operating expenses and net income of all renewable energy related investees in which the Company had an equity method investment:


	For the three months ended
	March 31,
(in thousands)	2020		2019
Gross revenue	$	21,821	$	10,334
Operating expenses		2,021		1,894
Net income and net income attributable to the entities (1)		10,825		8,492

⁽¹⁾

Net income includes $9.0 million net fair value loan losses and $0.1 million of net fair value loan gains recognized as of March 31, 2020 and March 31, 2019, respectively.

Investments in U.S. Real Estate Partnerships

At March 31, 2020, the $19.2 million reported carrying value of investments in U.S. real estate partnerships represented the Company’s 80% ownership interest in a joint venture that owns and operates a mixed-use town center and undeveloped land parcels in Spanish Fort, Alabama (“SF Venture”). The Company has the right to a preferred return on its unreturned capital contributions, as well as the right to share in excess cash flows of the real estate venture. As of March 31, 2020, the Company held an 80% economic interest based upon the partnership’s distribution waterfall. This entity was determined not to be a VIE because decision-making rights are shared equally among its members. Accordingly, the Company accounts for this investment using the equity method of accounting.

The following table provides information about the total assets, debt and other liabilities of the U.S. real estate partnerships in which the Company held an equity investment:


	At		At
	March 31,		December 31,
	2020		2019
(in thousands)
Total assets	$	51,237	$	51,718
Debt		6,657		6,426
Other liabilities		20,536		20,493

The following table provides information about the gross revenue, operating expenses and net loss of U.S. real estate partnerships in which the Company had an equity investment:


	For the three months ended
	March 31,
(in thousands)	2020		2019
Gross revenue	$	642	$	664
Operating expenses		715		470
Net loss and net loss attributable to the entities		(755)		(879)

Refer to Note 10, “Commitments and Contingencies,” for more information about risks and uncertainties that existed at March 31, 2020, that could significantly affect the amounts reported in the near term related to the Company’s equity investment in the SF Venture.

Investment in SAWHF

At March 31, 2020, the carrying value of the Company’s 11.85% equity investment in SAWHF was $4.8 million, which reflects a $3.0 million decline from December 31, 2019 due to investment dispositions and foreign currency translation losses due to the weakening of the rand against the U.S. dollar in the first quarter of 2020. The SAWHF was determined not to be a VIE, and therefore, the Company accounts for this investment using the equity method of accounting.

The following table provides information about the carrying value of total assets and other liabilities of SAWHF:


	At		At
	March 31,		December 31,
	2020		2019
(in thousands)
Total assets	$	32,890	$	56,356
Other liabilities		339		130

The following table provides information about the gross revenue, operating expenses and net income of SAWHF:


	For the three months ended
	March 31,
(in thousands)	2020		2019
Gross revenue	$	1,112	$	199
Operating expenses		491		331
Net income and net income attributable to the entity		76		2,034